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Lesson 9 of 14 · Free

Breakouts and range trading

How to trade sideways markets and catch breakouts without getting trapped.

Author: Moustafa HijaziContent reviewed: 2026-10-301 min readSelf-study course

Range trading

When price bounces between clear support and resistance, buy near support with a stop just below it, target the middle or top of the range. Reverse at resistance. Works until it doesn't — so keep stops tight and size small.

Breakout trading

Ranges end with a breakout. Key tells of a real breakout: strong close beyond the level, above-average volume, and a successful retest (price comes back to the level, holds, and continues). Entering on the retest gives a tighter stop and avoids most fake breakouts.

Fakeouts

Price pokes through a level, traps breakout traders, then reverses. Protect yourself by waiting for the candle close and the retest, and by never chasing an extended move.

CompressionNarrowing ranges (triangles, inside bars, falling ATR) often precede big moves. Mark them in advance and set alerts rather than staring at the screen.

Self-check

Answer the questions, then check your answers. You can retry as often as you like.

1. Which signs point to a real breakout?

2. A range has support at €50 and resistance at €60. You buy near support. Following the lesson, where are the stop and the target?

3. Why does the lesson suggest entering a breakout on the retest?

Automatic self-check for your own revision. Your answers are checked in your browser and are not seen or assessed by us. It is not an exam and not a qualification.

Your progress

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